Are you a great trader, but you don’t know it yet? Are you mired in the belief that your trading plan has to be perfect? This week Norman Hallett, the Disciplined Trader, has some tips for you. See the full 4 minute drill fro traders below.
WATCH THE FULL TRADING DRILL HERE:
Read the full video script:
I was thinking today that there are lot of great traders out there, but they don’t know it yet.
And they don’t know it because they are mired in the belief that their trading plan has to be perfect.
And because they are striving for perfection, they spend most of their time outside the market, looking in, than they are inside the market really learning the feel and personality of a market.
There’s only so much you can do as far as analyzing, tweaking and improving hypothetical performance…
.. but until you get into a position and put yourself at risk, your REAL learning and growing potential is limited.
Now, I’m not saying don’t take the time to create an effective trading plan and save some time each week to review it and maybe make adjustments.
What I AM saying is that if you can look at your learning process and identify that you are spending much more time outside the market than actually putting yourself at risk… I suggest that you put yourself and your plan on the line a little more.
The key is to trade small… but trade… Meaning, take on the minimum number of positions in order to execute your plan… and be slow to increase the size of your positions.
Many times in my career, I’ll trade a new plan and the first week it starts out like gangbusters… only to give me mixed results in the second or third week.
You need to have patience. A month is a better time frame to judge before expanding from minimum exposure. And be as active as you can in that month, so that you get a real test.
I’m very passionate about this point, because I’m capable of being planning-centric rather than doing-centric in my trading and in my life in general.
When I started playing tennis, I took a bunch of lessons and not playing any games because I didn’t think I was good enough… quite yet. I didn’t want to embarrass myself.
When I finally started playing real games, I wasn’t winning. I had all the skills… and sometimes much better skills than my opponents… but I was losing.
I didn’t develop a FEEL for the REAL game of tennis.
But as soon as I cut out the lessons and played more matches, I got better… fast… because is was IN THE GAME… not practicing for it.
Now, the lessons helped me, no doubt… but it was APPLYING the lessons that made me a good player.
And, I believe it’s the same with trading. You’ve gotta get in there and feel the risk. Feel the pain. Feel the joy. And learn to manage both ends of the ‘feeling’” spectrum.
You do THAT, my fellow traders, and you know yourself better, appreciate yourself more, and have the confidence to trade YOUR WAY… the profitable way for YOU.
OK.. that’s it for this edition of 4-Minute Drill for Traders..
So, until next week… Stay Disciplined!